Torpedo7 co-founder and co-chief executive Luke Howard-Willis. Photo / supplied
Torpedo7 co-founder and co-chief executive Luke Howard-Willis. Photo / supplied
The Warehouse Group is set to expand its "multichannel business" by taking a majority shareholding in major online sporting gear retailer Torpedo7.
In an announcement to the NZX this morning, the company said it had signed an agreement to acquire 51 per cent of the shares of Torpedo7Limited, for up to $33 million.
Hamilton-based Torpedo7 was founded in 2004 by Luke Howard-Willis and is now a popular online seller of outdoor sports clothing and equipment, with a particular focus on cycling.
An Australian Torpedo7 website was kicked off in 2006 and the company now also operates the 1-day and Urban Daddy websites in New Zealand and Australia.
The Warehouse Group said it would pay $20 million on settlement, with the performance-related balance payable over three years.
The other 49 per cent of the shares of Torpedo7 will be retained by existing shareholders and settlement is expected to occur early next month.
Warehouse chairman Graham Evans said the move would offer customers "a retail experience when, how and where they want it across a broader range of products.
"The strategic partnership created by the purchase of a majority shareholding in Torpedo7 Limited is another example of our continued focus on the expansion of our multichannel business," he said.
